Bybit, the cryptocurrency exchange, has fully restored the $1.4 billion in Ether (ETH) stolen during a cyberattack on Feb. 21, according to CEO Ben Zhou.
In a Feb. 24 announcement on X, Zhou assured users that all client assets have been restored to a 1:1 ratio. He added that an audited proof-of-reserves report will soon be published to confirm the security of user funds.
Bybit CEO Ben Zhou says the exchange has fully covered losses from the massive hack. Source: XThe exchange used a Merkle tree verification system, a cryptographic method that ensures the integrity of asset reserves.
How the Exchange Recovered $1.4 Billion in Missing Ether
Bybit has secured 446,870 ETH, worth approximately $1.23 billion, through a combination of loans, whale deposits, and direct purchases. This amount represents nearly 88% of the total stolen funds.
Bybit-linked wallet address bought 157,660 Ether from several investment firms. Source: LookOnChain on XA Bybit-linked wallet, identified as “0x2E45…1b77,” purchased 157,660 ETH—valued at $437.8 million—from major crypto investment firms Galaxy Digital, FalconX, and Wintermute through over-the-counter (OTC) deals. Another wallet, labeled “0xd7CF…A995,” acquired $304 million in ETH via transactions on centralized and decentralized exchanges.
Arkham Intelligence data suggests that this second wallet has interacted with Binance and MEXC hot wallets. Multiple transfers were made to these wallet addresses to help replace the lost assets. The first recorded purchase from “0x2E45…1b77” took place on Feb. 22.
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Bybit Hack Represents Over 60% of Stolen Funds in 2024
The $1.4 billion hack stands as the biggest crypto theft ever recorded. It accounted for more than 60% of all stolen cryptocurrency funds in 2024. The attack targeted liquid-staked ETH, Mantle Staked ETH (mETH), and other ERC-20 tokens.
Following the security breach, Bybit’s total assets dropped by $5.3 billion, which includes the stolen amount. On Feb. 22, customer withdrawals also exceeded $5.3 billion.
Despite the major setback, Bybit continues to maintain a strong financial position. The exchange’s total assets currently stand at $10.9 billion, according to data from DefiLlama. More importantly, proof-of-reserves auditor Hacken has confirmed that Bybit’s reserves still exceed its liabilities, meaning all user funds remain fully backed.
The hack initially caused panic in the market, with Bitcoin falling 5% when the news broke. However, the market has since stabilized, with Ethereum rebounding as Bybit quickly refilled its treasury.
Neil Roarty, cryptocurrency analyst at ClickOut Media, said the market reaction suggests that the hack was seen as a short-term hit rather than a crisis.
The quick recovery shows markets see this as a hit, not a crisis, but the attack could accelerate regulatory scrutiny and that might in turn dampen inflows. Investors still like the long-term outlook for crypto, but the question of keeping their funds safe remains a challenge.
Said Neil Roarty, crypto analyst at ClickOut Media.
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